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NEW DELHI: The State Bank of India raised concerns about the financial stability of women-centric Direct Benefit Transfer (DBT) schemes in various states. These schemes, which provide direct cash benefit transfers to women particularly around election periods, could put a major strain on state budgets.
According to the report, the total cost of these initiatives across eight states has surpassed Rs 1.5 lakh crore, accounting for 3–11 per cent of these states’ revenue receipts. The report describes these schemes as creating a “tsunami” of welfare spending, with some appearing to be electoral tactics in disguise.
While some states, like Odisha, are better positioned to fund these programmes due to higher non-tax revenues and no borrowing requirements, others face significant fiscal risks. The report cites Karnataka’s Gruha Lakshmi scheme as an example, which provides Rs 2,000 per month to female heads of households at an annual cost of Rs 28,608 crore—11 per cent of the state’s revenue receipts.
Similarly, West Bengal’s Lakshmir Bhandar scheme, offering a one-time Rs 1,000 grant to women from economically weaker sections, costs Rs 14,400 crore, amounting to 6 per cent of the state’s revenue receipts. Delhi’s Mukhyamantri Mahila Samman Yojana, which allocates Rs 1,000 per month to adult women (excluding certain categories), requires Rs 2,000 crore annually, or 3 per cent of its revenue receipts.
The SBI report also warned of potential ripple effects, suggesting that the central government could face pressure to introduce similar schemes.
It added, “It would be worth taking course to adopt a universal income transfer scheme (matching grant from center to states) towards substantially reducing several market disturbing subsidies”
While these schemes aim to empower women and attract electoral support, the report highlighted the need for states to carefully assess their fiscal health and borrowing practices.
The report also pointed out the need for a holistic evaluation of welfare spending to ensure long-term financial stability.
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